Notice Board:

Growth Sectors

The municipality has targeted five sectors for robust
development. Two of these sectors, manufacturing and tourism, are currently
active contributors to the local economy. The other two sectors, services,
Renewable Industries and creative industries, have the potential to support
economic growth.

MANUFACTURING

Five manufacturing subsectors (or industries) have a
strong presence and potential for further development within the Nelson Mandela
Bay area.

AUTOMOTIVE

Nelson Mandela Bay, undoubtedly the motor manufacturing
mecca of Africa, is home to a vibrant and ever-growing industry which provides
the basis of the region’s manufacturing capacity. The largest car manufacturer
in the country, Volkswagen South Africa, a wholly-owned subsidiary of
Volkswagen AG, is situated in Uitenhage. General Motor’s SA is a locally owned
organization, while Ford SA is another Port Elizabeth based Original Equipment
Manufacturer. The Struandale Ford engine plant manufactures and exports the
Rocam engine used in the Ikon, Bantam and Ka models. The undisputable
automotive gateway of Nelson Mandela Bay is the Port Elizabeth harbour.

Nelson Mandela Bay is also home to automotive component
manufactures that are well positioned to serve top Eastern Cape exporters like
Volkswagen South Africa, General Motor SA. Vehicles manufacturers and component
suppliers in this area have established themselves globally as reliable niche
cap fillers. The European Union is the largest export destination for local
component exports at the moment.

AGRO-PROCESSING

Dairy, food processing, wool and mohair are the three
primary active agro-processing industries in the Eastern Cape. There are
opportunities to expand processing of Ultra High Temperature (UHT) milk, milk powder
and cheese. There are also opportunities for new canning and juicing plants; as
well as prospects for the processing of wool and mohair. The Eastern Cape is
the leading world producer of high-quality merino wool and mohair fibres.
However, three-quarters of the wool and mohair clips is exported semi-processed
and approximately 20% completely raw. The challenge is to bring together
designers, technology and investors to produce higher value for goods and
exploit new markets.

CLOTHING AND TEXTILES

The Eastern Cape is renowned for its textiles and its
status as a major producer of wool and mohair. Currently, key products being
manufactured are seat covers, fabric and upholstery, industrial hosing, medical
fabrics, clothing and the use of natural fabrics for bags, matting and
carpeting. Areas being examined are the use of new materials like hemp, wool
and mohair fashion items, and indigenous Xhosa designs in high quality fashion
clothing. Two key opportunities that have been identified are a fibre
processing plant to spin wool and mohair fibre into yarn, as well as a textile
mill, centred on cotton, poly-cotton and acrylic fabric.

CHEMICALS

Plastics and pharmaceuticals are the key chemical
industries in the Eastern Cape. Nelson Mandela Bay is home to Aspen, the
largest generics manufacturer in the southern hemisphere and the leading
supplier of generic medicines to both the private and the public sectors in
South Africa. Aspen is one of the top twenty generic manufacturers worldwide
and South Africa’s number one generic brand. The plastics industry, albeit small,
is highly diversified throughout the province where automotive, packaging,
moulding and extrusion, household and construction industries are prominent.

METALS & MINERALS

The Coega IDZ is in the process of establishing a metals
cluster, with a potential aluminium smelter as an anchor tenant. Due to access
to lower cost energy and adequate labour, the Coega IDZ provides a competitive
cost margin which is conducive for this industry to thrive.

TOURISM

Tourism is viewed as an important area of growth for
Nelson Mandela Bay and the Eastern Cape at large. Key attractions in and around
Nelson Mandela Bay include wildlife and outdoor, cultural, historical as well as
adventure and sport related activities and attractions. Infrastructural
developments that are necessary for tourism growth have been prioritised by the
Nelson Mandela Bay Municipality. Nelson Mandela Bay has seen steady growth in
the tourism industry in terms of both local and international visitors,
resulting in an average annual increase
of approximately 10%. This trend has seen the growth of township tourism, thereby
strategically positioning Nelson Mandela Bay to benefit.

Future developments in NMB:

• Waterfront Development

• Statue of Liberation

• Revival of North End Beach

• Xhosa Cultural Village

• International Convetion Centre

CREATIVE INDUSTRIES:
FILMING IN NMB

A number of initiatives, city and provincial, private and
public have been launched with the specific intention of building and
developing the film industry within Nelson Mandela Bay and the Eastern Cape at
large. Nelson Mandela Bay and its environs have played host to a number of
national and international feature films. The city was selected because of the untapped freshness of the locations
and "grime free urban environment”.

A variety of top quality locations are available in and around
Nelson Mandela Bay.

South Africa, and in turn Nelson Mandela Bay, offers film
makers cost-effective locations all in close proximity to each other. The climate
is ideal and because South Africa’s summer falls during the Northern Hemisphere’s
winter, it offers and the fact that English is spoken across

South Africa and its compatible time zone (GMT+2) allows
for effortless adaptation from America or Europe.

SERVICES

The services sector, comprising of the Business Process
Outsourcing (BPO) and the Information Communication Technology (ICT)
industries, present viable prospects for growth and especially employment creation.
Nelson Mandela Bay has been identified as a prime location for call centres and
back office operations serving South Africa, Africa, Europe and the rest of the
English-speaking world. The provincial government’s approach to ICT is outward
looking, with plans to boost technology advances in underdeveloped communities
while it also aims to facilitate BPO investment in Nelson Mandela Bay and the
rest of the province.

Nelson Mandela Bay being the only city in South Africa
with two operational ports offers an opportunity for outsources trading in the
freight-forwarding and local or international logistics spheres. The Coega
Development Corporation (CDC) in its investor-attraction drive has constructed
a 9000 m2 ‘BPO Park’ facility, which is a fully equipped ‘plug and play’
facility for any prospective BPO investor seeking to leverage on the
opportunities.

According to Statistics South Africa’s 2001 census, the
city of Nelson Mandela Bay is the most populous city in South Africa with over
775 000 inhabitants. The region is also home to two universities and has a
number of private and public further educational facilities at its disposal. The
Nelson Mandela Bay Municipality has partnered with the CDC for the training and
development of unemployed individuals for the BPO market.

These young persons were trained as part of a pilot
programme to ascertain the ability of training providers in the region to
provide the necessary BPO-specific training required by the industry.
Therefore, there is a reliable supply of skilled labour in the region that can
easily be absorbed by any investor in the BPO market. Given the small call center base in the region
and the close proximity of all citizens to the commercial centers, the labour
costs, travelling time and attrition rates are extremely low in the Nelson
Mandela Bay region, compared to the more developed markets in the country. Port
Elizabeth is referred to as a 15-minute city and this is illustrated by the
fact that it takes a mere 20 minutes to travel from the Uitenhage CBD to Port
Elizabeth. Nelson Mandela Bay has good road and rail communications and an
International Airport providing effective links within and beyond South Africa.

RENEWABLE INDUSTRIES

The Nelson Mandela Bay Municipality is embarking on a
drive of creating sustainable employment, diversifying the key sectors,
strengthening competitiveness.

The Renewable Energy sector is one of the targeted
sectors identified for diversification and one of the fast growing owing to the
IPP programme of the Department of Energy. Generation and Components Manufacturing Industry
is one of the key targeted sectors. The development of this sector is prioritized
in the proposed Nelson Mandela Bay region Industrial Developed Strategy.

THE NMBM IS
SURPPOTING INITIATIVES SUCH AS:

• Solar
Energy projects

•Wind
Power generation

•Biomass
and Biofuels

•Combined
cycle Gas

•Renewable
Energy Components Manufacturing

The Coega IDZ is the key developmental nod for
Renewable Energy and is said to be the Renewable Energy Hub. Developing a
Centre of Excellence for Renewable Energy, triggered by the growth of the
sector and skills shortage is in the pipeline

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